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Subject:  Lump Sum vs Pension Annuity Date:  3/21/2011  11:42 AM
Author:  RoadScholar5 Number:  68665 of 88051

I did 20 years of hard time with my previous employer.

They froze the pension plan in 2006, nevertheless, I am still eligible for a pension based on all my service up to that point.

I am eligible to begin receiving a reduced monthly amount at age 55, or wait and receive the full monthly benefit at age 65.

Additionally, there is an option to receive a partial lump sum in lieu of monthly payments.

I have not yet contacted the company to look into the lump sum option.

What are the calculations and considerations given to taking a lump sum vs. monthly benefit?

Thank you in advance, RS
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